The petrodollar system that came into existence in the 1970s has come under stress, with oil being traded increasingly in non-US denominated currencies.
Two factors explain Washington’s lack of enthusiasm for sanctioning Saudi Arabia over the Khashoggi affair despite domestic and international pressure.
Riyadh committed a crime and blunder; its communication strategy, so far, has been an unmitigated disaster. MbS is facing a challenge, to put it mildly.
The PAC-3 missile defence deal is a win-win package for both the United States and Saudi Arabia in terms of both their bilateral relations and the enhancement of regional security.
While Saudi Arabia intends to increase its regional role and influence, the US would like to ensure that its interests in West Asia are protected with the help of friends like Saudi Arabia.